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Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income before income taxes
($ in millions)
For the year ended December 31:2024 20232022
Income/(loss) from continuing operations before income taxes
U.S. operations (1)
$(3,405)$(227)$(6,602)
Non-U.S. operations9,202 8,917 7,758 
Total income from continuing operations before income taxes$5,797 $8,690 $1,156 
(1)2024 and 2022 include the impact of a pension settlement charge of $2.7 billion and $5.9 billion, respectively. Refer to note U, “Retirement-Related Benefits,” for additional information.
Components of the provision for income taxes by geographic operations and taxing jurisdiction
The components of the income from continuing operations provision for/(benefit from) income taxes by taxing jurisdiction were as follows:
($ in millions)
For the year ended December 31:202420232022
U.S. federal
Current$(335)$560 $391 
Deferred(2,204)(1,371)(2,645)
$(2,539)$(811)$(2,253)
U.S. state and local
Current$152 $127 $184 
Deferred(335)(162)(486)
$(183)$(34)$(302)
Non-U.S.
Current$2,301 $1,594 $1,676 
Deferred203 428 252 
$2,504 $2,022 $1,929 
Total continuing operations provision for/(benefit from) income taxes$(218)$1,176 $(626)
Discontinued operations provision for/(benefit from) income taxes$6 $(9)$124 
Total provision for/(benefit from) income taxes$(212)$1,167 $(503)
Effective income tax rate reconciliation
A reconciliation of the statutory U.S. federal tax rate to the company’s effective tax rate from continuing operations was as follows:
For the year ended December 31:202420232022
Statutory rate21 %21 %21 %
Tax differential on foreign income (1)
(13)(3)(29)
Domestic incentives (1)
(7)(5)(24)
State and local (1)
(2)0 (21)
Other (1)
(3)1 (1)
Effective rate(4)%14 %(54)%
(1)2024 includes the impacts of pension settlement charges on tax differential on foreign income, domestic incentives, state and local, and other of (4) points, (3) points, (2) points, and (1) point, respectively. 2022 includes the impacts of a pension settlement charge on tax differential on foreign income, domestic incentives, state and local, and other of (24) points, (20) points, (21) points, and (1) point, respectively. Refer to note U, “Retirement-Related Benefits,” for additional information.
Percentages rounded for disclosure purposes.
Components of deferred tax assets and liabilities
Deferred Tax Assets
($ in millions)
At December 31:20242023
Retirement benefits$1,898 $2,269 
Leases1,157 1,055 
Share-based and other compensation796 720 
Tax losses/credits (1) (2)
3,615 3,069 
Deferred income790 682 
Bad debt, inventory and warranty reserves198 305 
Depreciation238 205 
Accruals (includes restructuring charges) (2)
395 347 
Intangible assets2,482 2,774 
Capitalized research and development4,185 3,524 
Other (2)
784 917 
Gross deferred tax assets16,537 15,868 
Less: valuation allowance1,223 765 
Net deferred tax assets$15,314 $15,103 
Deferred Tax Liabilities
($ in millions)
At December 31:20242023
Goodwill and intangible assets$3,147 $3,054 
GILTI deferred taxes1,200 2,195 
Leases and right-of-use assets1,483 1,369 
Depreciation438 523 
Retirement benefits1,478 1,443 
Undistributed foreign earnings211 192 
Hedging (2)
448 30 
Other (2)
746 786 
Gross deferred tax liabilities$9,151 $9,593 
(1)Includes domestic tax loss/credit carryforwards and foreign tax loss/credit carryforwards.
(2)Prior-year amounts have been reclassified to conform to the change in 2024 presentation.
Reconciliation of unrecognized tax benefits A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows:
($ in millions)
202420232022
Balance at January 1$8,772 $8,728 $8,709 
Additions based on tax positions related to the current year667 296 355 
Additions for tax positions of prior years452 231 174 
Reductions for tax positions of prior years (955)(457)(470)
Settlements(61)(26)(41)
Balance at December 31$8,875 $8,772 $8,728